2023 Highland Property Review

by Bernadette Walker

In 2023, the Highland property market experienced a relatively steady year, aligning closely with the trends observed in 2022 regarding new properties entering the market. While there was a slight dip in the number of properties sold compared to 2022, various factors such as the cost of living crisis, energy costs, and mortgage interest rates likely contributed to the slowdown in buyer plans.

In contrast to national property market news reports, the Highlands demonstrated resilience with a 9% increase in the average property price and an 8% rise in available properties for sale.

The latter half of 2023 brought positive news for first-time buyers as interest rates declined, and flats emerged as one of the top three property types entering the market. The prominence of flats among the top three sold property types
for 2023 suggests a potential shift favouring individuals aiming to step onto the property ladder.

Notably, 18% of properties sold belonged to the Premier Properties range (properties valued above £300,000), indicated a possible trend of downsizing in 2023.

Other factors influencing the Highland property market included the Scottish Government's impending EPC rating rules for landlords and new holiday let licensing regulations.

These changes might explain the increasing availability of flats in recent years.

The average selling price in 2023 witnessed a 9% increase compared to 2022, with £218,000 being the average house price. The top three sold property types were Detached Bungalows, Detached Villas and Flats. Detached properties collectively achieved an average sold price of £281,520, selling +5% against the asking price. Semi-detached properties sold +3% above asking price at an average of £195,926, while flats achieved a +1% selling price above the average at £131,049. Overall, the sold price for the HSPC group exceeded the asking price by 3.4% in 2023.

Property stock increased by an average of 8% in 2023, offering relief to buyers who had faced challenges in the preceding three years due to a fast-paced market and low stock availability.

Key Trends for 2023

• The average house price for the Highlands in 2023 was £218,072, representing a 9% increase from £200,943 in 2022.
• March, October, and November were the busiest months for property sales in 2023, as opposed to December in 2022.
• June maintained its position as the busiest month for new properties coming onto the market, consistent with the trend observed in 2022 and 2021.
• April to June marked the busiest quarter for new property listings, while the most active quarter for properties sold was from October to December.
• Detached bungalows led in the volume of property types sold in 2023, followed by detached villas. In 2022, flats had the largest volume of property types sold.
• The average selling price of a flat in the Highlands was £131,049. Flats were the highest in number among property types entering the market, followed by detached bungalows and detached villas.
• The highest-priced property type was the detached villa, with an average of £331,297, reflecting a 5% increase compared to the previous year.
• On average, properties sold through HSPC achieved a 3% premium over the asking price in 2023.
• Over 3.9 million pages were viewed on hspc.co.uk in 2023.
• July stood out as the most successful month for achieving a 'sold price' versus 'asking price,' with an average of 8% over the asking price.
• 60% of properties in 2023 were Early Bird properties, appearing on HSPC first before any other portal.

For the largest portfolio of properties in the Highlands, contact HSPC at 01463 231173, email [email protected] or send a private message on our social media platforms. For mortgage advice, call 01463 231232 or email
[email protected].